There is a referendum vote on November 30 in Switzerland if passed would require the Swiss National Bank to hold 20% of its reserves in gold. The head of the Swiss National Bank is against this proposal. The adoption of “Save Our Swiss Gold” initiative would be a fatal error of judgment SNB President Thomas Jordan told a Swiss paper. “Two little gold in the economic crisis was never the problem, the strong Franc was the problem,”
Swiss having a long history in their culture for the appreciation of a gold in there financial reserves, a respected currency, and a strong independent banking system. These have recently failed due to the popularity of Fiat based currencies. The current monetary environment of quantitative easing makes the practices of huge gold holdings to back their currency unadvisable for the SNB.
“It would have a major impact if it passes,” said Joni Teves of UBS. “If they do launch of buying program, it would effectively a constant bid in the market.” “Passage could push gold above $1350 or 18% higher than now” added Bank of America analyst Michael Leaving.